Unformatted text preview:

The Nature of ServicesLearning ObjectivesProportion of Goods and Services in Purchase BundleThe Service Process MatrixThe Service PackageThe Service Package (cont.)The Servuction Service ModelUnique Characteristics of ServicesStrategic Service Classification (Nature of the Service Act)Strategic Service Classification (Relationship with Customers)Strategic Service Classification (Customization and Judgment)Strategic Service Classification (Nature of Demand and Supply)Strategic Service Classification (Method of Service Delivery)Open Systems View of Service OperationsTopics for DiscussionThe Nature of ServicesLearning ObjectivesUnderstanding the managerial implications of the distinctive characteristics of a service operation.Describing a service using the four dimensions of the service package.Insights gained from strategic classifications of services.Challenges for management of service enterprises.Proportion of Goods and Services in Purchase Bundle Goods Services 100% 75 50 25 0 25 50 75 100% Self-service gasoline……………. Personal computer…………… Office copier…………………. Fast-food restaurant………… Gourmet restaurant………… Auto repair…………………… Airline flight……………………. Haircut………………………….Service/Product BundleService/Product BundleElementElementCore Core GoodsGoodsExampleExampleCore Core ServiceServiceExampleExampleBusinessBusinessCustom clothierCustom clothierBusiness hotelBusiness hotelCoreCoreBusiness suitsBusiness suitsRoom for the Room for the nightnightPeripheralPeripheralGoodsGoodsGarment bagGarment bagBath robeBath robePeripheralPeripheralServiceServiceDeferred Deferred payment planspayment plansIn house In house restaurantrestaurantVariantVariantCoffee loungeCoffee loungeAirport shuttleAirport shuttleThe Service Process Matrix Degree Degree of Interaction and Customization of labor Intensity Low High Service factory: Service shop: * Airlines * Hospitals Low * Trucking * Auto repair * Hotels * Other repair services * Resorts and recreation Mass service: Professional service: * Retailing * Doctors High * Wholesaling * Lawyers * Schools * Accountants * Retail aspects of * Architects commercial bankingThe Service PackageSupporting Facility: The physical resources that must be in place before a service can be sold. Examples are golf course, ski lift, hospital, airplane.Facilitating Goods: The material purchased or consumed by the buyer or items provided by the consumer. Examples are food items, auto parts, legal documents, golf clubs.The Service Package (cont.)Explicit Services: Benefits readily observable by the senses. The essential or intrinsic features. Examples are quality of meal, attitude of the waiter, on-time departure.Implicit Services: Psychological benefits or extrinsic features which the consumer may sense only vaguely. Examples are privacy of loan office, security of a well lighted parking lot.The Servuction Service ModelThe Servuction Service ModelCustomer ACustomerBBundle of ServiceBenefits ReceivedBy Customer AInanimateEnvironmentContactPersonnelor Service ProviderVisibleInvisibleInvisibleOrganizationAnd SystemUnique Characteristics of ServicesIntangibility: creative advertising, no patient protection, importance of reputation Perishability: cannot inventory, opportunity loss of idle capacity, need to match supply with demandHeterogeneity: customer participation in delivery process results in variabilitySimultaneity: opportunities for personal selling, interaction creates customer perceptions of qualitySite Location: dictated by your customers Customer Participation in the Service Process: attention to facility design but opportunities for co-productionDifficulty in measuring quality of output:Strategic Service Classification (Nature of the Service Act)Strategic Service Classification (Nature of the Service Act) Direct Recipient of the ServiceNature of the Service Act People Things People’s bodies: Physical possessions: Health care Freight transportation Passenger transportation Equipment repair and maintenanceTangible actions Beauty salons Veterinary care Exercise clinics Janitorial services Restaurants Laundry and dry cleaning Haircutting Landscaping/lawn care People’s minds: Intangible assets: Education BankingIntangible actions Broadcasting Legal services Information services Accounting Theaters Securities Museums InsuranceStrategic Service Classification (Relationship with Customers)Strategic Service Classification (Relationship with Customers) Type of Relationship between Service Organization and Its CustomersNature of Service Delivery “Membership” relationship No formal relationship Insurance Radio station Telephone subscription Police protectionContinuous delivery College enrollment Lighthouseof service Banking Public Highway American Automobile association Long-distance phone calls Restaurant Theater series subscription Mail serviceDiscrete transactions Commuter ticket or transit pass Toll highway Sam’s Wholesale Club Movie theater Egghead computer software Public transportationStrategic Service Classification (Customization and Judgment)Strategic Service Classification (Customization and Judgment) Extent to Which Service Characteristics Are CustomizedExtent to Which Personnel Exercise Judgment in Meeting Customer Needs High Low Professional services Education (large classes) Surgery Preventive health programs Taxi services College food service High


View Full Document

UNCW OPS 372 - Nature of Services

Download Nature of Services
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Nature of Services and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Nature of Services 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?